Vulcan Materials Company
Exchange: NYSESector: Basic MaterialsIndustry: Building Materials
Vulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the nation's largest supplier of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete.
Did you know?
Price sits at 58% of its 52-week range.
Current Price
$297.32
-1.46%GoodMoat Value
$186.33
37.3% overvaluedProfile
Valuation (TTM)
Market Cap$38.82B
P/E34.87
EV$39.54B
P/B4.55
Shares Out130.58M
P/Sales4.82
Revenue$8.06B
EV/EBITDA17.84
Vulcan Materials Company (VMC) Stock Analysis
GoodMoat Analysis
Vulcan Materials is a leading aggregates producer with a strong regional moat based on scale and logistics, but it currently trades at a significant premium to its estimated fair value. The valuation appears unfavourable for a value investor seeking a margin of safety.
Read full analysis
Vulcan Materials Company (VMC) is a major producer of construction aggregates (crushed stone, sand, and gravel), a basic material essential for infrastructure and building projects. Its primary competitive advantage, or moat, stems from the combination of scale, strategic location of reserves, and high transportation costs, which create significant local and regional barriers to entry. Applying the GoodMoat framework, this aligns with criteria like 'Scale Privilege' and 'Supply Chain Advantage,' as its network of quarries near key markets is difficult and expensive to replicate. However, the business is cyclical and asset-heavy, with a revenue growth of only 3.2% YoY, indicating it may not meet the high-growth or high-return thresholds typical of a 'High Quality' rating in the framework's Quality Indicators section. The key issue is valuation. The stock trades at a P/E of 33.1 and a price of $269.53, which is approximately 45% above the GoodMoat Target price of $186.33. According to the Decision Framework's Valuation & Risk Gate, this represents a negative Margin of Safety, placing it in the 'Unfavourable' band. While the business possesses a durable operational moat, the current price does not offer the margin of safety required for a value investment. For a value investor, this suggests the company is not worth investigating further at this price level, though it may warrant monitoring for a more attractive entry point in the future. Analysis based on data as of 2024-05-15.
Market Cap$38.82B
Current Price$297.32
P/E Ratio34.87
Forward P/E—
PEG Ratio1.13
EPS$8.11
Book Value$65.29
P/B Ratio4.55
VMC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 10.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 4.7B
Revenue
4.9B
FY19
4.9B
FY20
5.6B
FY21
7.3B
FY22
7.8B
FY23
7.4B
FY24
7.9B
FY25
Net Income
618M
FY19
585M
FY20
671M
FY21
576M
FY22
933M
FY23
912M
FY24
1.1B
FY25
VMC 52-Week Range
$253.31
$329.74
50-Day MA: $284.65200-Day MA: $291.14
Did you know?
Trading 37% above its estimated fair value of $186.33.
Vulcan Materials Company (VMC) Financial Summary
Vulcan Materials Company (VMC) is a Basic Materials company in the Building Materials industry, listed on NYSE. The stock currently trades at $297.32 with a market capitalization of $38.82B.
Key valuation metrics include a P/E ratio of 34.87, price-to-book ratio of 4.55, and EPS of $8.11. The company reports a profit margin of 13.8% and return on equity of 13.1%.
VMC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $38.82B |
| P/E Ratio | 34.87 |
| EPS | $8.11 |
| P/B Ratio | 4.55 |
| P/S Ratio | 4.82 |
| EV/EBITDA | 17.84 |
| Dividend Yield | 0.67% |
| Profit Margin | 13.8% |
| Return on Equity | 13.1% |
| Debt/Equity | 0.57 |
VMC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.93B | $617.70M |
| FY20 | $4.86B | $584.50M |
| FY21 | $5.55B | $670.80M |
| FY22 | $7.32B | $575.60M |
| FY23 | $7.78B | $933.20M |
| FY24 | $7.42B | $911.90M |
| FY25 | $7.94B | $1.08B |
Vulcan Materials Company (VMC) Valuation
Based on GoodMoat's DCF model, Vulcan Materials Company has a fair value estimate of $186.33. At the current price of $297.32, the stock appears 59.6% overvalued relative to our intrinsic value estimate.
VMC Quality Indicators
Vulcan Materials Company maintains a profit margin of 13.8% and an operating margin of 20.4%. Return on equity stands at 13.1%. The current ratio is 2.69. Debt-to-equity ratio is 0.57.
About Vulcan Materials Company
Vulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the nation's largest supplier of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete.
VMC Free Cash Flow
Vulcan Materials Company generated $1.16B in trailing twelve-month free cash flow, representing an FCF yield of 2.99%. This moderate FCF yield indicates reasonable cash generation.
VMC Shares Outstanding
Vulcan Materials Company has 0.13 billion shares outstanding at a share price of $297.32, giving it a market capitalization of $38.82B.
VMC Recent Insider Trades
Recent insider transactions at Vulcan Materials Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Anderson Melissa H. (Director) | SELL | 1,137 | $345329.64 |
| BAKER THOMPSON S II (President) | SELL | 7,135 | $2.15M |